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The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. It doesn’t matter how small an employer is, they still have to pay the minimum wage. The minimum wage rate depends on a worker’s age and if they’re an apprentice.

Workers are also entitled to the National Minimum Wage if they are:

  • part-time
  • casual labourers, eg someone hired for one day
  • agency workers
  • workers and homeworkers paid by the number of items they make
  • apprentices
  • trainees, workers on probation
  • disabled workers
  • agricultural workers
  • foreign workers
  • seafarers
  • offshore workers

Contracts for payments below the national minimum wage are not legally binding. The worker is still entitled to the minimum wage.

It’s a criminal offence for employers not to pay someone the National Minimum Wage or to falsify payment records. Employers who discover they’ve paid a worker below the minimum wage must pay any arrears immediately.

Rates for the National Minimum Wage for 2016-17 are :

  • Apprentice – £3.30
  • Under 18 – £3.87
  • 18-20 – £5.30
  • 21-24 – £6.70
  • 25 and over – £7.20

The National Living Wage came into force on April 1st 2016, and more information can be found on the PayrollAbility Website here:

http://www.payrollability.co.uk/daily-q-a-national-living-wage/

Here is the link to more information about the National Living Wage on the Gov.org website:

https://www.gov.uk/national-minimum-wage-rates

If you are unsure what you should be paying your employee, and would like some advice PayrollAbility would be happy to hear from you. Call the office today for a chat.